Financial managers majorly make decisions such as investment plans, funding as well as dividend decisions. Such decision-making relates to their crucial role such as in the case of investment, they must identify assets that the company should invest the funds. The financial manager's key role in funding is identifying where to source for funds for investment. Consequently, they make dividend decisions since they are authorized to decide how to distribute the surplus income.
The common ethical issues in financial management can be wrongly advising customers relating to financial matters, leading them to the wrong investments. Other ethical issues could be charging a commission on such services and also a conflict of interest. Such could be taken care of by implementing transparency and making decisions in favor of customer's interest and giving them advice that can best solve their queries.
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The Securities Act of 1933 states that audited financial statements must be accompanied by sales registration statements of securities and give the defrauded investors a chance to sue. Sarbanes-Oxley Act of 2002, on the other hand, ensures that investors are not defrauded by corporations. All these acts safeguard the clients since they provide criminal proceedings for financial malpractice.
A private company relinquishes equity by selling some shares to acquire capital for other considerations when going public. Such could be undertaken through engaging an investment bank and negotiate on the amount and value of shares. The investment bank then becomes legally responsible for shares and sells them ( Gregoriou, 2006) . The advantage could increase capital base strength, diverse ownership, and easier acquisition while the disadvantage is that it could majorly be high pressure for short term growth.
NYSE and NASDAQ are majorly the most significant markets. NYSE enforces auction trading structure while NASDAQ handles their trading electronically. NASDAQ is the best private investment option as it is likely to be associated with better returns, and also, there are no strict entry conditions.
Ownership investments, which are the significant investment product, include real estate, stock, and many others. Other products include lending investment, including bonds, and TIPS. Such products can be provided by government institutions that provide bonds and the public companies which majorly provide shares (Wong, 2011) .
References
Gregoriou, G. (2006). Initial public offerings . Oxford: Butterworth-Heinemann.
Wong, M. (2011). The risk of investment products . Singapore: Hackensack, NJ.
Muro, V. (1998). Handbook of financial analysis for corporate managers . New York: AMACOM.
